Choosing how and where to invest your hard-earned money can be a difficult decision when you’re looking to maximize return on investment and secure a solid financial future, but when you factor in countries like Mexico where the US dollar is strongest, the right decision is just as crystal clear as the turquoise waters of the Mexican Caribbean Sea! Read on to learn more about how the US dollar enjoys a favorable exchange rate in Mexico and why this ongoing trend is important for much more than just your travel budget.
“Travelers looking to stretch the US dollar this year should consider Latin America”, wrote USA Today. “Whether you’re on a tight budget or looking for luxury without the high price tag, undervalued currencies [like the Mexican Peso] and decreasing foreign exchange rates should be on your radar”.
US Dollar to Peso Shows Mexico Remains Favorable for Investment
Most beach lovers know that Mexico offers a fantastic bargain in the vacation department, but real estate in Mexico also offers a monumental investment opportunity, thanks in large part to the strength of the US dollar compared to the Mexican peso. As of this writing, $1 USD currently buys about 19 Mexican pesos, which is up five percent from last year and almost twice as much as just one decade ago.
When you consider that most Mexico real estate transactions are done in cash, it’s easy to see how this dollar-to-peso valuation is favorable. Combine that with the fact that the average price of a round-trip flight is less than $400 and Mexico starts to crystallize as the ideal place to invest in income-producing properties like vacation home rentals.
“Because of the warm weather, cheap flights and close proximity, Mexico remains an especially popular destination for American travelers, particularly for ‘snow birds’ who head south between December and April”, wrote CNBC.
Of course the cost of living, such as the grocery, entertainment and restaurant prices in Mexico, is also comparatively low for anyone who is paying for these things with US dollars; a fact that only adds to the allure for travelers and investors alike.
In summary, the favorable exchange rate between the US dollar and Mexican peso is an ongoing trend that makes Mexico a tremendous bargain for investors and expats alike who are looking for alternative investments that will help them pay for retirement and diversify their financial portfolio beyond the typical stocks, bonds and mutual funds that dominate most retirement accounts. In addition, many of the condos in Mexico designed to serve as vacation home rentals are approved for purchase in your IRA account, offering yet another way to invest and maximize tax free returns through ongoing rental income.
Do you have questions about investing in Mexico real estate? Share them in the comments!
Want to know more about buying investment property in Mexico? Read 10 Reasons Riviera Maya Real Estate Won’t Depreciate to see more of what the world’s hottest real estate market has to offer!